Feb 7, 2017

SEC considers dismantling CEO pay-gap disclosure rules

Donald Trump orders his cabinet to review Dodd-Frank regulations. (Pablo Martinez Monsivais/AP)

The GOP's list of grievances against the Dodd-Frank financial reform law is long, but near the top is a rule that requires companies to disclose the ratio between the compensation of its CEO and that of the median worker. The Wall Street Journal reports that an executive order signed last week concerning financial regulation would at least delay the implementation of the rule, which was supposed to go into effect last year.

Why it was included in Dodd Frank: As an effort to create more transparency around CEO pay, and pressure boards into slowing its rise.

What critics say: The ratio is difficult and costly to calculate and gives investors no useful data for evaluating the performance of firms. Furthermore, it may actually encourage companies to outsource more of their labor needs to contractors, a move that could lead to greater economy-wide inequality, even as it lowers intra-firm inequality.

Go deeper

Pandemic and protests can't stop the stock market

Traders work on the floor of the NYSE. Photo: Spencer Platt/Getty Images.

United States equities were on pace to open higher Monday following big gains in Asia and Europe and a risk-on bid in currency markets.

Why it matters: Stock markets could continue to rise despite an unprecedented global pandemic, violent protests over police violence in the U.S. not seen since the 1960s, and spiking tensions between the world's two largest economies.

2 hours ago - Sports

The sports world speaks up about death of George Floyd

Celtics guard Jaylen Brown. Screenshot: Jaylen Brown/Instagram

There was a time when a months-long sports absence would have silenced athletes, leaving them without a platform to reach fans or make their voices heard.

Why it matters: But now that athletes boast massive social media followings and no longer need live game broadcasts or media outlets to reach millions, they're speaking out en masse amid protests over the death of George Floyd and other police-related killings of black people — delivering messages of frustration and unity, despite their leagues not currently operating.

The technology of witnessing brutality

Charging Alabama state troopers pass by fallen demonstrators in Selma on March 7, 1965. Photo: Bettmann/Getty Images

The ways Americans capture and share records of racist violence and police misconduct keep changing, but the pain of the underlying injustices they chronicle remains a stubborn constant.

Driving the news: After George Floyd's death at the hands of Minneapolis police sparked wide protests, Minnesota Gov. Tim Walz said, “Thank God a young person had a camera to video it."